Tax Credit Investments (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Affordable Housing Tax Credit Investments, Other Tax Credit Investments, and Related Unfunded Commitments

The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	18,298	$	20,074
Other tax credit investments, net	43,066		47,301
Total tax credit investments, net	$	61,364	$	67,375
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,379	$	1,379
Total unfunded tax credit commitments	$	1,379	$	1,379

Affordable Housing Tax Credit Investments and Other Tax Credit Investments

The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three and six months ended June 30, 2021 and 2020: 

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	899	$	1,393	$	1,796	$	2,627
Other tax credit investment credits and tax benefits	2,743		2,540		5,428		3,840
Total reduction in income tax expense	$	3,642	$	3,933	$	7,224	$	6,467
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	460	$	537	$	1,003	$	1,091
Affordable housing tax credit investment impairment losses	431		665		772		1,083
Other tax credit investment losses	351		679		524		1,223
Other tax credit investment impairment losses	1,730		1,535		3,417		3,247
Total amortization of tax credit investments recorded in non-interest expense	$	2,972	$	3,416	$	5,716	$	6,644